Iain Duncan Smith Swings And Misses

Iain Duncan Smith 2

Four years of painstaking research have finally revealed the gaping black hole in Britain’s finances, the reason why the British state has grown so large and expensive yet manages to achieve such mediocre outcomes in so many areas.

No, it wasn’t throwing ever larger sums of money at the same inefficient education and healthcare delivery models. Nothing to do with a rigid retirement age at a time of ever increasing life expectancy. It turns out that the problem was providing multilingual access to benefit claim forms, and translating services to immigrants who lack fluent English. Armed with this knowledge, Iain Duncan Smith, the Work and Pensions secretary, has drafted a clever scheme to fix everything.

The Daily Mail, for whose readers this policy was so transparently and cravenly crafted, summarises it thus:

In a radical bid to slash Britain’s benefits bill, the Prime Minister intends to stop printing welfare paperwork in foreign languages and prevent claimants using taxpayer-funded translators at benefits offices.

The move – which would also hit British residents who cannot speak English – was due to be announced tomorrow, but has been delayed following a row with Nick Clegg.

Tories hope that axeing foreign-language versions of documents explaining how to claim benefits would make it harder for immigrants such as newly arrived Romanians and Bulgarians to cash in on the UK’s benefits system, encourage others already here to learn English – and save money spent on translators.

Anyone who thinks that taking this action will slash Britain’s annual welfare bill needs to go away, look at the figures and then maintain a long period of dignified silence. Social security spending (pensions and benefits) will cost Britain £256 billion in 2014. How much of that vast sum do people really think goes toward printing forms in multiple language and hiring translators? Who, exactly, is the Work and Pensions secretary trying to fool?

Just use Google Translator
Just use Google Translator, that will save some cash.

 

If you want to do the things that IDS proposes to save some money around the edges then that’s one thing, but to enact them and claim that it will “slash the welfare bill” is misleading and disingenuous. Iain Duncan Smith is a talented minister with otherwise good ideas, and it is discouraging to see him wasting his efforts proposing ideas such as this when he knows full well that they will go nowhere towards solving our fiscal problems.

Of course, there are doubtless some lazy immigrants who are perfectly capable of learning English sufficiently well to be able to function independently, and yet who choose not to do so for one reason or another. Where this refusal is rooted in a stubborn unwillingness to integrate into British society and desire to remain part of an insular and closed community, this is a particular cause for concern, because integrating new immigrants effectively into our country is vital for social, law and order and national security reasons. But threatening to cut benefits from immigrant claimants is highly unlikely to either solve the problem of people persistently failing to learn English or dramatically cut the welfare bill.

If the Tories’ concern about new immigrants struggling to integrate into British society is genuine, then they should propose some positive ideas to help promote inclusion and cohesion, and suggest ways to make it easier for new arrivals to learn their new native language. There should be some carrot (even if the incentive is of the cheapest kind, such as pointing people in the direction of existing English courses at local colleges and institutions) as well as the stick of cutting off access to benefits. If they are not seen to tackle the problem from both ends, many people (myself included) will suspect them of cynical motives.

And cynical they are. This is a proposal designed entirely to grab headlines, but more worryingly than that, it is a proposal designed to win the approval of the Daily Mail. If the Conservative party is really gearing up for 2015 general election mode by pandering to the prejudices of their base rather than reaching out to those whose instincts are to vote Labour or Liberal Democrat (who are likely to roll their eyes at policy announcements such as this) then there is grave cause for concern at their electoral prospects.

All is not yet lost – the Conservative Party has recently shown some signs of attempting to reach out beyond their core supporters. But, as so often, we see these small steps forward immediately neutralised by the two steps back of the let’s-bash-the-immigrants rhetoric. Shedding the label of the “nasty party” is not helped by policy proposals such as this.

The sardonic response from the Liberal Democrats puts it best:

“These are proposals from the Tories which haven’t been agreed in Government,” [the LibDem source] said.

“We’ve already taken significant steps to make sure we all enjoy the right to move and to work, but not a freedom to claim.

“We will look at these proposals, but would prefer the Tories to agree policies in Government rather than chase Ukip’s tail via the Sunday papers.”

The Conservatives would do well to heed this particular pearl of wisdom from their inexperienced junior coalition partners.

Making The Rich Pay Twice

We recently saw the Labour Party make some potentially sensible proposals on education – moving to enhance the status of teachers by simultaneously licensing them and requiring them to undertake continual professional accreditation, and making it easier to fire consistently underperforming teachers and helping them transition out of the profession.

Contrast this good news of the Labour Party embracing a carrot-and-stick performance-based approach to educational reform, with this dismal, tired suggestion from Social Market Foundation. The Guardian reports the details of their latest proposal:

One proposal would see popular state schools being means tested, with the most affluent parents being charged for their children to attend top schools.

Families earning more than £80,000 a year should contribute financially, with those with an annual income above £200,000 having to pay the full price of their children’s education at the best state schools. Fees should be the same for the wealthy as those charged at independent day schools.

This “parent premium” for households earning more than £200,000 a year would generate surplus funds, a quarter of which would be retained by the school, with the rest redistributed among other state schools.

We can lump this nonsensical idea together with all of the other vengeful “clobber the rich” schemes broached by those on the left to create a fairly accurate picture of their ideal Britain. In their Ideal Britain, anyone earning much over £150,000 a year would be subject to a 50% marginal tax rate on their income. And when they reached £200,000 a year, a household wanting to send their children to a “popular state school” would have to pay a school fee in line with the fees charged by private day schools, because why the hell not?

Meaningless graphic for a nonsensical policy.
Meaningless graphic for a nonsensical policy.

Implementing this policy would likely cause a fair bit of bemusement and anger among the evil rich fat cats being targeted, as they rightly assume that the hefty taxes that they pay entitle them to equal access to the state services that they help to fund. If, when a household has paid well over half of their income to the government once income tax, national insurance, other direct taxes and VAT are taken into account, I don’t think it is very unreasonable to assume that they have contributed enough and maybe give them a break. But not according to the Social Market Foundation. Having gone through the fiscal wringer once already, SMF sees them ripe for further punitive action, charging them for access to the good state schools that they are already paying to fund.

What next? Means testing access to NHS services? Charging for chemotherapy or kidney transplants? Where does this end?

In fact, the SMF proposal would create the bizarre and perverse financial incentive for parents to send their child to a “less good” or less popular state school so as to avoid spending up to £30,000 a year in fees. Their children might suffer as a result, but perhaps those who advocate for ideas such as this would see that as a good thing. By dragging down the progeny of the rich and successful, we create the more equal, mediocre society that they long for.

This is regressive social engineering of the worst kind, dragging down the successful and clobbering them for more money, funds which would be used for the nebulous purpose of “helping the less fortunate”. As always, the methods of taking from the rich and successful are very enthusiastically and clearly articulated, but the process by which those seized funds would be translated directly into helping the less fortunate is much more vague.

The long and short of it is this. I may greatly disagree with the current heavy tax burden, and the huge, creaking behemoth state that it funds, but I also recognise that it is the concept of everyone paying in and everyone being eligible to partake of the results that helps to create social cohesion and makes us a country rather than a bunch of economic agents who happen to live on the same island. Charging richer parents to send their children to schools that they have already paid taxes to provide – indeed, closing off access to any public services from the wealthy people who provide the lions share of the funding for them – only serves to further entrench the us vs. them atmosphere already roiling our country, but this time would give the rich some ammunition to justifiably argue their corner.

Spending on education increased from £40.6 billion in 1999 to £88.6 billion in 2014, and is estimated to rise further to £90.9 billion in 2016. If British educational standards are indeed stagnating or worsening, chronic underinvestment does not make a convincing scapegoat. Making rich people pay market rates to avail themselves of the public services that they have already funded through their taxes would no doubt fulfill many of the darker, more insidious desires of some on the left. But one thing that it would certainly not do is fix our educational problems.

Treading Water On NSA Surveillance, Ctd.

Evidently given prior notice of the dissatisfaction that was certain to fall on his head should he fail to announce any substantive changes to the bulk telephony data collection programme that flourished under his administration, President Obama triangulated and managed  to set out a plan that included the illusion of substantive changes. It may prove enough to fool the trusting and the credulous, but there are precious few of those sorts of people left to be fobbed off.

He listens. He gets it.
He listens. He gets it.

The New York Times gives a good overview:

President Obama, declaring that advances in technology had made it harder “to both defend our nation and uphold our civil liberties,” announced carefully calculated changes to surveillance policies on Friday, saying he would restrict the ability of intelligence agencies to gain access to telephone data, and would ultimately move that data out of the hands of the government.

But Mr. Obama left in place significant elements of the broad surveillance net assembled by the National Security Agency, and left the implementation of many of his changes up to Congress and the intelligence agencies themselves.

The one announcement not earlier anticipated by the New York Times was the fact that the president may be slightly more amenable to the idea of telecommunications companies or as-yet unspecified third parties holding the unconstitutionally-gotten telephony metadata, rather than the NSA itself. The Times reports:

On the question of which entity will hold the storehouse of phone metadata, the president said Mr. Holder would make recommendations in 60 days. Privacy advocates have called for telecommunications providers to keep the data, though many of the companies are resisting it.

And resist they should. Due to the sensitive and highly politically charged nature of the data being held, why would a private firm wish to open itself to potential liability from lawsuits by hosting the data? Furthermore, unsavoury and unconstitutional though it may be for the government to be collating this data, it is probably more secure in the hands of the paranoid and capable people at the NSA than it would be in some corporate data centre.

But all of this is beside the point – it is not the question of where the data is hosted that upsets civil libertarians. If someone robbed banks for a living, the main concern of the public would not be where the robber is hiding the stolen cash before laundering it, it would be the fact that he is robbing banks in the first place. Similarly, the point of contention here is not whether the US government or private telecommunications companies holds vast troves of data about the telephone calls made by US and foreign citizens – it is the fact that the government seeks to monitor and check this information without a warrant to do so in the first place.

It is hard to listen to anything that Obama says on the issue of national security and privacy without remembering that he wouldn’t be saying anything at all had his clandestine spying apparatus not been revealed to the world by Edward Snowden, and that the debate that he now seeks to claim credit for starting would, if he had his way, be held only between competing interests in government, well out of the view or input of the public.

Glenn Greenwald is of the same viewpoint, seeing right through the sham:

The crux of this tactic is that US political leaders pretend to validate and even channel public anger by acknowledging that there are “serious questions that have been raised”. They vow changes to fix the system and ensure these problems never happen again. And they then set out, with their actions, to do exactly the opposite: to make the system prettier and more politically palatable with empty, cosmetic “reforms” so as to placate public anger while leaving the system fundamentally unchanged, even more immune than before to serious challenge.

And how cosmetic these proposed “reforms” really are. Caught in the act of carrying out unconstitutional searches and intrusions into the private communications of US citizens, the president’s response is not to admit any fault, but to utter meaningless platitudes about the importance of “America’s values” while changing nothing of any substance at all:

And now we have the spectacle of President Obama reciting paeans to the values of individual privacy and the pressing need for NSA safeguards. “Individual freedom is the wellspring of human progress,” he gushed with an impressively straight face. “One thing I’m certain of, this debate will make us stronger,” he pronounced, while still seeking to imprison for decades the whistleblower who enabled that debate. The bottom line, he said, is this: “I believe we need a new approach.”

I have just finished reading the excellent essay by George Orwell, “Politics and the English Language”. As well as helping me to realise just how pretentious and cumbersome my own writing can sometimes be on this blog (for which I can only apologise and pledge to try harder), it furnished me with this gem, this eternal truth:

If you simplify your English, you are freed from the worst follies of orthodoxy. You cannot speak any of the necessary dialects, and when you make a stupid remark its stupidity will be obvious, even to yourself. Political language – and with variations this is true of all political parties, from Conservatives to Anarchists – is designed to make lies sound truthful and murder respectable, and to give an appearance of solidity to pure wind.

And this one:

In our time, political speech and writing are largely the defence of the indefensible … Thus political language has to consist largely of euphamism, question-begging and sheer cloudy vagueness. Defenceless villages are bombarded from the air, the inhabitants driven out into the countryside, the cattle machine-gunned, the huts set on fire with incendiary bullets: this is called pacification. Millions of peasants are robbed of their farms and sent trudging along the roads with no more than they can carry: this is called transfer of population or rectification of frontiers … Such phraseology is needed if one wants to name things without calling up mental pictures of them.

President Obama, justifying the intrustive actions of the NSA and seeking to cast his proposed cosmetic reforms in a favourable light, and himself as a champion of individual liberty, said this:

“In an extraordinarily difficult job — one in which actions are second-guessed, success is unreported, and failure can be catastrophic — the men and women of the intelligence community, including the NSA, consistently follow protocols designed to protect the privacy of ordinary people,” he declared. “What sustains those who work at NSA and our other intelligence agencies through all these pressures is the knowledge that their professionalism and dedication play a central role in the defense of our nation.”

And this:

And yet, in our rush to respond to very real and novel threats, the risks of government overreach – the possibility that we lose some of our core liberties in pursuit of security – became more pronounced. We saw, in the immediate aftermath of 9/11, our government engaged in enhanced interrogation techniques that contradicted our values. As a Senator, I was critical of several practices, such as warrantless wiretaps. And all too often new authorities were instituted without adequate public debate.

Through a combination of action by the courts, increased congressional oversight, and adjustments by the previous Administration, some of the worst excesses that emerged after 9/11 were curbed by the time I took office. But a variety of factors have continued to complicate America’s efforts to both defend our nation and uphold our civil liberties.

The “worst excesses” to which Obama refers? Torture. Extraordinary rendition. Illegal search and invasion of privacy. But “techniques that contradicted our values” sounds so much better, so much more clinical and so much less descriptive of what happened.

This isn’t good, is it?

The Green Party Goes All In

A city to watch in 2014.

 

Interesting news from the city of Brighton, where the UK’s only Green Party-controlled local council is planning to put the question of a significant council tax increase directly to the people who would have to pay it. At an estimated cost of £100,000, the council plans to hold a referendum to ask citizens to approve a 4.5% council tax increase which is expected to raise £2.5 million per year more than the assumed 2% increase.

Consulting the people directly is entirely the right thing to do, and is actually very much in line with Conservative party policy under the influence of Eric Pickles, the Communities Secretary. There is currently a threshold in place requiring local councils to hold a referendum to gain approval from constituents for any council tax increase of above 2%, but this has led to a rash of councils repeatedly skimming just beneath the 2% level year after year, continually cranking up the tax without having to gain the consent of the people. In fact, this has prompted some within the Conservative party to agitate for reducing the referendum threshold to increases in excess of 1.5%, a figure well below the current inflation rate.

Credit must be given to the Green Party for actually having the guts to stand behind their favoured spending plans and asking the local citizenry to sign off on them. I may vehemently degree with some of their specific goals or policies, but I will always respect a party that is willing to go directly to the electorate on an important issue over one that claims to speak for the people without having consulted them.

Of course, the referendum plan was announced with a predictable degree of sanctimony and victimhood from the Greens, as The Guardian reports:

Justifying the move, [Green Party council leader] Kitcat said: “The coalition’s cuts mean we cannot deliver the services we were elected to provide and which our consciences say we should provide. We have no choice but to seek the views of local people on funding these services through a tax increase.

“Westminster’s ideologically driven cuts to local councils are huge and relentless while demand for our services continues to grow. Vulnerable people who depend on our services are being threatened from Westminster like never before.

The Green Party leader, Natalie Bennett, ladles it on even thicker:

Bennett said: “As Greens we believe that decisions should be made closest to the people who are affected. Instead of letting Whitehall impose cuts on vulnerable people in Brighton and Hove, this announcement takes the decision to the people.

I do find it slightly ironic that the Green Party should take this opportunity to boast about their supposedly-favoured tactics of localism and direct democracy when it is quite plainly apparent that they only turned to the referendum idea out of desperation once all other avenues to fund their big-spending plans had failed to deliver.

Nonetheless, this is a broadly positive development, and it will be very interesting to see how the people of Brighton vote if the referendum does take place. A referendum would require the support or abstention of the Conservative or Labour parties, as the Greens have only minority control of the council chamber, and I would hope that both parties would gladly consent to letting the people have their say – though this is by no means certain.

Not for much longer, perhaps.
Not for much longer, perhaps.

 

The denizens of Brighton are an interesting bunch in terms of their political leanings, having returned Caroline Lucas to Westminster as the only Green MP in Parliament, and so they can hardly be described as a bellwether city or constituency for gauging the national mood. But one thing is readily apparent: if the referendum takes place and it turns out that even left-wing Brighton isn’t willing to put up the money to fund high levels of public spending, then there will be precious little appetite to do so anywhere else.

Which would rather undermine all of the anti-austerity arguments so loudly proclaimed by the left since 2010, wouldn’t it?

We Need A Federal United Kingdom, Not Just More Powers To Scotland

 

I have felt like something of a voice in the wilderness at times on this blog, advocating for equal devolution of powers from Westminster to the four home nations of the United Kingdom, to the extent that have almost questioned my sanity that something so self-evidently sensible and obvious to me should be so opaque and avant-garde an idea to almost everyone writing a newspaper column or appearing as a TV news talking head.

And so I am seizing on the words of Allister Heath with all the enthusiasm at my disposal. Apparently I am not alone after all. Addressing the question of Scottish independence and the upcoming referendum, Heath writes:

But that doesn’t mean that the status quo is right either. The UK’s constitution has been an irrational and unsustainable shambles since the Scotland Act of 1998; this can only be resolved satisfactorily if the process that started with Scottish devolution is now taken to its logical conclusion.

Following what we must hope will be a resounding “no” vote, we need to adopt a new, fully federal model for the UK inspired by the US, Canadian, Swiss and other similar systems that share power properly between the centre and autonomous provinces or states. England needs to have its own parliament, Scotland, Wales and Northern Ireland must be given greater rights and responsibilities, and all component nations of the UK need to start living within their means, raising as much tax as they spend.

This is heartening for two reasons – firstly because it validates my own thinking, but with the persuasive articulacy of someone who writes weekly columns in a national newspaper. It is absolutely right to assert that the devolution process begun in 1998 put our country into a state of limbo, but I would go further and argue that the UK’s constitution has been a shambles for many decades and indeed centuries prior to that. This tends to be the case in older countries that have eschewed revolution or invasion in recent times, but while conservatism would tend to urge an “if it ain’t broke, don’t fix it” attitude, our constitutional underpinning and the way that our country functions is of such fundamental importance that I cast the “traditionally conservative” attitude aside in favour of the reforms advocated by Heath.

Secondly, Heath’s joining the argument for a federal solution is heartening because he addresses the financial aspect in a mature and sensible way. Making the four home nations responsible for their own taxation would allow for that all-too-rare thing, variety, to take root in the UK. The four countries could experiment with setting tax rates in line with local preferences to achieve local ends, and the redistributionist pipe dreams of some of the nationalist parties (SNP, I’m looking at you) once and for all. Heath expands on this thinking, conferring upon the home nations the financial autonomy enjoyed by the states of the US plus a little bit more:

Crucially, the UK’s four component-nations should not merely have the right to spend money but also the responsibility to raise it; they would have their own tax systems, running in parallel with a much reduced UK-wide HMRC. The four nations ought to be able to cut and hike taxes, and would be under great pressure to balance their budgets. They should have the right to issue their own debt, which would not have sovereign status and would not be guaranteed by the UK.

Absolutely right. Of course there will always be a place for HMRC, because certain tax policy (such as import/export duty) must remain common to all. But giving the home nations the right to set their own tax rates on the “big ones” like income tax and corporation tax is absolutely the right thing to do. This could even present the ideal opportunity to do away once and for all with the laughable notion that National Insurance is somehow separate from income tax – let the people see what their real effective tax rate is when NI is factored in to a single tax rate and see what they think of their overall tax burden then.

The UK has suffered from a dearth of political competition for too long. At times I have really struggled to differentiate between the views of the coalition government and the Labour opposition in terms of attitude to the proper size and scope of the state. Sure, the Conservatives may talk the small government talk, but in no way have they boldly walked the walk. Four powerful national assemblies under the auspices of the Westminster parliament would allow for some real diversity in our islands, diversity of ideas and yes, diversity of outcomes.

The end result of all of this would be political settlements more closely attuned to the moods of the local electorates, and therefore more democratic in the true sense of the word. Heath fast-forwards the clock and imagines the likely power dynamics in a newly-federal UK:

In a federal UK, England would probably be run by a pro-market Tory government (or, intriguingly, a Tory-Ukip coalition) with the UK as a whole controlled by Labour, at least in the short term. We could see radical tax cuts in England and elsewhere as leaders vie to grab business. Northern Ireland, in particular, is ripe for drastic supply-side reforms to rejuvenate its economy. This new dynamic would better reflect electoral preferences and would allow rival political ideologies to be tested simultaneously in different parts of the country.

In short, this call for a federal United Kingdom is the complete antithesis to Gordon Brown’s cack-handed intervention in the Scottish independence debate (which I dissected here), in which he proposed a raft of discriminatory (to the rest of the UK) special perks and privileges to be carved out for Scotland as a bribe to their electorate in advance of the referendum. That foolish proposal has all the hallmarks of Brown – short term political manoeuvering to achieve a tactical outcome at the great expense of a broader strategic goal (the strategic goal being the more efficient and democratic governance of the UK as a whole).

The side of democracy, transparency and common-sense needs more articulate advocates, and today we can add Allister Heath to the ranks. Where he picks up, may many more soon follow.